The partnership will enable Kolkata-based Srei Infrastructure Finance Ltd’s equipment finance segment and Bank of Baroda to team up and expand their respective customer base.
As part of the strategic tie-up, the companies will use iQuippo, a digital marketplace for initiation of loans, loan dues’ collection, and auction and valuation of equipment.
Srei, owned by the Kanoria family, unveiled the iQuippo platform in 2016 for consolidating and digitalising the uneven infrastructure equipment industry.
With over 70,000 customers and more than $400 million of loans disbursed via iQuippo, SEFL and Bank of Baroda, in cooperation, will provide loans and other services for construction and mining equipment, tippers, IT and allied equipment, medical and allied equipment, besides farm equipment.
“Bank of Baroda has a strong track record, brand appeal and experience in customer services, which will be complemented by Srei’s knowledge, experience and strong partnerships in the equipment finance space,” said Sunil Kanoria, vice-chairman, Srei.
“The alliance will create value for both businesses and customers, and continue our leadership position in the equipment financing business,” he added.
In February, SEFL also agreed to co-lend with public lender Syndicate Bank. The agreement was made in adherence to the Reserve Bank of India’s circular dated 21 September 2018, which permits banks to connect with Non-Banking Financial Companies (NBFCs) to co-lend for priority sector assets.
Srei’s equipment finance business lends for the purchase of new and used equipment needed for construction, mining and allied equipment, this includes equipment used for earthmoving and mining, concreting, road building, material handling and processing.